"Economic Policy Review" Bulletin ISSN 1313 - 0544

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Despite the recovery over the past two years, the Bulgarian economy has not yet reached its levels prior the crisis, measured as real GDP at constant prices. If we use the above-mentioned definition of depression, the Bulgarian economy remains in a depression for 12 quarters or 36 months. Slowing growth in recent quarters and the dangers of entering in to a new recession are already visible... Reaching pre-crisis levels at the time remains wishful thinking.

The five partners of the GIFTED Project met in Lisbon on June 12 and 13, 2012 to finalize the research activities of Work Package 1 focused on investigating funding mechanisms for Adult Learning (AL) currently in place in selected pilot Member States and identifying good practices in publicly funded AL.

Overall, the data for the first months in 2012 show that Bulgaria will not be passed by the recession, which started at the end of 2011 in the EU. It seems increasingly likely, that we are also going to be affected by the economic contraction in the first quarter of 2012, which may continue in the coming quarters.

At first glance, the ugly caterpillar "Belene" has transformed into two beautiful butterflies – a steam-gas plant at the site and a new unit at NPP "Kozloduy". But these two butterflies are only painted on the ceiling of the imagination of the government. Much like the two previous governments, the current one seems to believe it has found something like an eternal engine: you start big projects, mobilize contracts, companies and funds, then shut them down because they are costly to the economy, and then start new similar projects all over again.

On April 16th 2012 the Institute for Market Economics (IME) released a report, analyzing the current regulatory framework and policies for the integration of people with disabilities. The report also proposes positive reform measures that, we believe, will better serve the purpose of full-fledged inclusion of such individuals.

Prior to the crisis, the country had sound public finances (budget surpluses) and over BGN 10 billion in reserves. Over the next three years the country accumulated more than BGN 5 billion in deficits and of course the fiscal reserves plunged to less than BGN 5 billion. Here is the simple story of the crisis – we addressed the problems by spending BGN 5 billion from our fiscal reserves...

The 2012 International Property Rights Index (IPRI) reveals the important relationship between property rights, economic freedom and a country’s level of development.

Video article

Schools of Thought in Classical Liberalism

In this seven part video series, Dr. Nigel Ashford explores five different schools of thought within the Classical Liberal tradition...

Quote of the week

“…Such seizure occurs whenever money is debased: For what is declared to be more is worth less. But if a prince is not empowered to levy taxes on unwilling subjects, and cannot set up monopolies for merchandise, he is not empowered to make fresh profit from debased money. These strategies aim at the same thing: cleaning out the pockets of the people and piling up money in the provincial treasury. Do not be taken in by the smoke and mirrors by which metal is given a greater value than it has by nature and in common opinion. Of course, this does not happen without common injury. When blood is let by whatever device or strategy, the body will certainly be debilitated and wasted. In the same way, a prince cannot profit without the suffering and groans of his subjects.”